Suppose That in an Effort to Explain Variation in Wages,you

Essay

Suppose that in an effort to explain variation in wages,you collect a panel data set with 12,300 total observations over 3 different years and you estimate the following pooled cross-section model $$\begin{array} { lllll } lo\widehat { g~wa}ge _ { i , t } =& 10.374 +& 0.023 \text { Experience } _ { i , t } +& 0.104 \text { Education } _ { i , t } + &0.036 \text { Married } _ { i , t } \\& (1.592) &(0.002)&(0.034) &(0.004)\\\\&&&n = 12,300 \\&&&R ^ { 2 } = .3246 \\\end{array}$$
a)How many individuals are included in your sample in each of the three years? How do you know? Explain.
b)How do you interpret the estimated sample regression function? Explain.
c)What is a potential shortcoming associated with this model? Explain.
d)What would be the simplest way to address the issue raised in (b)? Why would this address the issue? Explain.